The Business Buying Process/Behaviour

Question 1

How many characteristics of B2B Markets are there?

Answer 1

4

Question 2

Market Characteristics

Answer 2

• Low # of customers (not as many businesses as there are customer
• High geographic concentration
• Large size of order

Question 3

Product Characteristics

Answer 3

• High level of technicality (machinery and equipment)
• Raw materials or semi-finished goods
• High importance of post-purchase services (spend a lot of time and money)

Question 4

Marketing Mix Characteristics

Answer 4

• Use of Direct Selling
• High Technical Ads
• Price Negotiation
• Customization with Product

Question 5

What are the types of B2B buyers?

Answer 5

Producers, Resellers, Governments, Institutions

Question 6

How many steps are in the B2B Buying Process?

Answer 6

6

Question 7

What is step 1?

Answer 7

Need Recognition - someone recognizes that the organization has a need that can be solved by purchasing a good or service

Question 8

What is step 2?

Answer 8

Product Specification - putting parameters around what needs to be purchased (e.g., features and customization)

Question 9

What is step 3?

Answer 9

Supplier Search - seeking information about the products they are looking for and the vendors that can supply them (e.g., quotes/inputs)

Question 10

What is step 4?

Answer 10

Proposal Analysis - reviewing and selecting the final candidate

Question 11

What is step 5?

Answer 11

Order Specification - when the actual order is put together (the agreed-upon price, quantities, expected time of delivery, return policies, warranties, and any other terms of negotiation)

Question 12

What is step 6?

Answer 12

Performance Assessment - Evaluating their purchase and providing feedback to the supplier